1 CHAPTER 1 SCOPE OF THE STUDY 1.1 INTRODUCTION ...

More documents

Recommendations

Info

The use of the right data and accompanying tools, as well as the intelligent utilisation ofsuch data, is what is said, should be the focus of the businesses of today. The mostcompelling issue facing chain buyers and sellers is the lack of time. Being busy withboth internal and external pressures forces these buyers and sellers to gloss over thingsbecause the next problem is waiting for them (Joyner, 2007:13). Armed with the rightbusiness analytics, manufacturers and the mass market retailers they serve,undoubtedly have room for growth when it comes to meeting the beauty needs oftoday's Ethnic shopper (Joyner, 2007:13).Sherwood (2007) asserts that quality not quantity is driving the consumer in all areas ofbeauty. An example which illustrates the point is the fact that the market has becomeoversaturated with celebrity fragrances, and mass fragrance sales are predicted todecline 25 percent by 2010. This void is expected to be filled by premium luxuryproducts.Retailers are said to be taking advantage of this trend, through the repositioning of theirprivate label products, from being generic to brands in their own right, to competing withprestige brands in terms of both quality and price. According to Louise (2007), cosmeticretailers are being urged to target premium segments in order to stay abreast of theupsurge in supermarket retailing cosmetics, which are predicted to account for over halfof all beauty sales by 2011. It is stated that department store operators, home shoppingcompanies, specialists and general retailers should start to amend marketing plans andbegin to capitalise on the importance that higher segment products are beginning tohave in the market. It is understood however that despite the specialist end of thespectrum having the advantage of the important experience element of shopping, withattractive store elements and high shop keeping standards, supermarket chains arecreating measure to challenge this.There is said to be a trend for luxury products to migrate to the masses; therefore newproducts must replace them. For retailers, it is a question of hitting the right balance ofexclusivity and a welcoming atmosphere, which will bring consumers back to the luxury30
experience time and time again. Previously the movement of luxury items to the massmarket used to take time, however, that trend is no longer and the industry is movingfaster to mass produce luxury items (Sherwood, 2007).Current US Retailer trends are to seek ways in which they can retain their luxurycosmetic customer. A luxury retailer that maximises customer involvement creates aunique experience and draws out the desire to spend money in that store will retain theirfor luxury shoppers’. Customers enjoy interacting with brands and with one another.This interactive forum draws luxury customers into the retail environment by creating awarm and welcoming atmosphere, drawing them further into the experience. For thisreason, retail environments that include education, allow sampling and impart a feelingof pampering will draw in the luxury customer (Sherwood, 2007).2.2.2 Ethnic cosmetics in South Africa:Euromonitor International (2007), reports that the demand for Ethnic specific productshas increased. The US is the largest market for Ethnic products followed by SouthAfrica. South Africa is a major consumer of hair care products because of demand fromblack middle class. Davies (2007) explains that South Africa’s developing middle classhas put the country firmly on the Cosmetics and Toiletries industry’s radar, and its stronggrowth over the past five years is expected to continue through 2011.South Africa is said to have a sizeable and fast-growing black middle class nonexistentunder pre-1991 apartheid, estimated at 15 percent of the total population of 49 million in2005. Overall blacks’ disposable income surpassed that of the white population for thefirst time ever earlier the decade, and this new-found wealth is stimulating sales acrosscosmetics and toiletries market. The two point one billion dollar industry grew by 47percent between 2001 and 2005, and is set to grow by an additional five percent eachyear through 2010. Still one of the lowest spending markets in the world in per capitaterms, South Africa is said to nonetheless offer sustained value growth into the longerterm with fresh opportunities in an industry (Davies, 2007).31
Page 1 and 2: CHAPTER 1SCOPE OF THE STUDY1.1 INTR
Page 3 and 4: 1.3 RESEARCH OBJECTIVESThe primary
Page 5 and 6: ) Qualitative Research“Qualitativ
Page 7 and 8: The respondents to be chosen need t
Page 9 and 10: • Living Standards Measure: It di
Page 11 and 12: 2.2 INDUSTRY ANALYSIS2.2.1 Ethnic c
Page 13 and 14: grow in the forecast period. Men’
Page 15 and 16: cleans conditions and detangles whi
Page 17 and 18: In the general market, products are
Page 19 and 20: “all natural” claims by special
Page 21 and 22: As a segment, this market sector ha
Page 23 and 24: launching new Ethnic facial product
Page 25 and 26: h) Skin Care products current and f
Page 27 and 28: organic market, but are also breaki
Page 29: (2000) asserts that Ethnic women no
Page 33 and 34: the government. The emerging black
Page 35 and 36: Deodorant body sprays are particula
Page 37 and 38: Euromonitor International One (2007
Page 39 and 40: way, making it difficult to compete
Page 41 and 42: and 2.14). As South African men bec
Page 43 and 44: sales through those outlets is expe
Page 45 and 46: Producers of mainstream skin care b
Page 47 and 48: k) Sun Care Products current and fu
Page 49 and 50: Trends and insights into South Afri
Page 51 and 52: 2007:38). This expansion of distrib
Page 53 and 54: CHAPTER 3STRATEGY FOR BUSINESS GROW
Page 55 and 56: d) Improved SynergyImproved linkage
Page 57 and 58: The market penetration strategy is
Page 59 and 60: ) Gaining competitors' customers (P
Page 61 and 62: power saw and a lady in a clown sui
Page 63 and 64: Hoskisson and Hitt (2009:183) expla
Page 65 and 66: Vertical integration is also claime
Page 67 and 68: ) InternationalisationAnsoff (1965)
Page 69 and 70: are described as non-equity based a
Page 71 and 72: Another common reason for operating
Page 73 and 74: In recent years however, companies
Page 75 and 76: isk than simply attempting to incre
Page 77 and 78: Further advantages of diversificati
Page 79 and 80: efficiency. Quantity discounts thro
Page 81 and 82:
CHAPTER 4FRANCHISING AS A GROWTH ST
Page 83 and 84:
Franchising is a commercial relatio
Page 85 and 86:
usually grants further licenses wit
Page 87 and 88:
Miranda (2009) further explains tha
Page 89 and 90:
The franchisee is said to carry a h
Page 91 and 92:
e) Competitiveness achieved through
Page 93 and 94:
franchise, and pay royalties on tim
Page 95 and 96:
of the franchise is what breeds pos
Page 97 and 98:
4.6 CONCLUSIONIn this chapter franc
Page 99 and 100:
onset, which factors may cause cert
Page 101 and 102:
5.3.1 ValidityIn its purest sense,
Page 103 and 104:
Speciality Top End, Ethnic Cosmetic
Page 105 and 106:
5.4.2 Ethical AspectsWritten inform
Page 107 and 108:
Section three, deals with benchmark
Page 109 and 110:
Currently Mr Munroe is still occupy
Page 111 and 112:
) Are current retailers situated in
Page 113 and 114:
e) Because of this move, is their s
Page 115 and 116:
concludes however that that there a
Page 117 and 118:
(2009) states that SA retailers are
Page 119 and 120:
Carter and Carter (2009) proclaim t
Page 121 and 122:
6.3.5 Product RangingSection Five o
Page 123 and 124:
According to The Free Library (2009
Page 125 and 126:
The literature review reveals that
Page 127 and 128:
BabyCarter and Carter (2009) explai
Page 129 and 130:
(2009) also feels that such a niche
Page 131 and 132:
Munroe (2009) also suggests mini LC
Page 133 and 134:
) Do you see an interest from the f
Page 135 and 136:
e) What services are the above reta
Page 137 and 138:
h) Could current top end retailers
Page 139 and 140:
Page 141 and 142:
A goal of Market Penetration Strate
Page 143 and 144:
store to aid in the purchaser’s d
Page 145 and 146:
Carter and Carter (2009) assert tha
Page 147 and 148:
Page 149 and 150:
The literature review reveals that
Page 151 and 152:
The Ethnic cosmetic and toiletry ma
Page 153 and 154:
• Differentiation from competitor
Page 155 and 156:
In terms of focus shown to the Ethn
Page 157 and 158:
and brand reassurance, their desire
Page 159 and 160:
c) Store design and layoutThe layou
Page 161 and 162:
f) Promotional ActivitiesThe majori
Page 163 and 164:
From the conclusions drawn, it was
Page 165 and 166:
Available from:http://perfumesmelli
Page 167 and 168:
Cosmetics Design. 2005. Black hairc
Page 169 and 170:
Fortune Manning Lawyers. 2008. Freq
Page 171 and 172:
LaPolt, E. K. 1997. Ethical dilemma
Page 173 and 174:
Pearce, L . 2009. How to Take Your
Page 175 and 176:
Stilwell, J. 2007. Strategies for B
Page 177 and 178:
APPENDIX AQUESTIONNAIRE1. INDUSTRY
Page 179 and 180:
4. GAINING MARKET SHARE AS A NEW EN
Page 181 and 182:
c) How would you suggest a retail s
Page 183 and 184:
f) Are current SA retailers who sto
Page 185 and 186:
10. FUTURE OF THE ETHNIC COSMETICS
Page 187 and 188:
10.Vetiver, woody notes (men and wo
Page 189 and 190:
Table 2.9: forecast sales (in Milli
Page 191 and 192:
Table 2.17: Forecast sales (in Mill
Page 193 and 194:
Table 2.22: Forecast sales of Depil
show all

1 CHAPTER 1 SCOPE OF THE STUDY 1.1 INTRODUCTION ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?